Archives August 2014

Alibaba offers lifeline to Nokia China workers

Alibaba Group yesterday offered a glint of hope to the thousands of Nokia Corp employees expected to lose their jobs as a result of Microsoft Corp’s takeover.

The United States-based software giant plans to lay off 18,000 jobs globally by next year after completing its US$7.2 billion acquisition of the former world No. 1 phone maker.

About 90 percent of Nokia’s China workforce — most of whom are based in Beijing and Tianjin — are set to lose their jobs by the end of this year.

Hangzhou-based Alibaba, however, said on its Sina Weibo account that it will seek to recruit people laid off from Nokia China to help develop its cloud computing business.

“Nokia is a great company … and we are willing to offer a platform for those employees to achieve their dreams,” the world’s biggest e-commerce firm said.

Mercedes-Benz to cut prices of auto spare parts in China

Beijing Mercedes-Benz Sales Service Co, the German premium carmaker’s sales, marketing and after-sales unit in China, announced on Sunday that it would lower the prices of some of its spare parts in the country in response to Chinese authorities’ ongoing antitrust investigation of the auto sector.

The price cut, which will take effect on September 1, covers over 10,000 spare parts of all Mercedes-Benz models, and will be as much as 15 percent for some parts after the adjustment, the company said in a statement e-mailed to the Global Times.

“The adjustment…would lower costs for users and further enhance Mercedes-Benz’s competitiveness in the after-sales market,” the statement said.

In July, the company already lowered its maintenance prices by around 20 percent.

The price adjustment comes at a time when the auto sector is undergoing an antitrust investigation launched by China’s top economic planner, the National Development and Reform Commission (NDRC), and the Ministry of Commerce.

Several premium auto brands have decided to lower their prices recently.

The China unit of UK high-end auto brand Jaguar Land Rover, for example, said on July 25 that it would cut the prices of three models in China by some 200,000 yuan ($32,366.13) each on average.

FAW-Volkswagen Automotive Co, which produces Mercedes-Benz’ rival brand Audi in China, announced on July 26 that it would lower the prices for spare parts.

In a statement e-mailed to the Global Times in late July, the company said that its Audi unit has been “actively” cooperating with the investigation launched by the Chinese authorities.

As Mercedes-Benz follows suit, BMW, another premium auto brand in the Chinese market, is also very likely to make similar decisions, Wu Shuocheng, editor-in-chief at industry portal auto.gasgoo.com, told the Global Times on Sunday.

Wu noted that the price cut could bring benefits to both consumers and the overall after-sales market.

It is a foreseeable trend for high-end carmakers to lower their prices in China because of increasing competition, said independent analyst Zhang Zhiyong.

“But the authorities’ antitrust investigation will increase their price cuts,” Zhang said.

“As a result, the price difference between premium cars sold in China and abroad will be narrowed,” he added.

Chinese authorities have stepped up efforts to fight monopolistic behavior. In the latest case, the State Administration for Industry and Commerce confirmed last week that it had launched an antitrust investigation into Microsoft Corp.

Avaya eyes China’s medium-sized firms

Avaya, a global provider of business communications and collaboration systems and services, has an ambitious plan to target China’s medium-sized firms, said Lily Fu, channel director of Avaya (China) Communication Inc, in Beijing.

“We used to get most of our income from large enterprises, but in recent years the medium-sized firm market has showed growing strength with climbing revenues,” Fu said during an interview with China Daily website in Beijing.

“We are confident about China’s medium-sized firm market and are willing to help our customers realize their big dreams”, said Fu.

On July 22, 2014, Avaya announced that Jingtian&Gongcheng, one of China’s first private and independent partnership law firms, has deployed an integrated Avaya IP Office voice and video collaboration solution to provide staff in the Beijing headquarters and three branch offices with rich tools to enhance collaboration and operational efficiency.

“Smaller and medium-sized businesses are eager to enhance their competitive edge with leading communication and collaboration technologies, and demand flexibility, scalability and ease of management. Avaya is focused on providing dynamic organizations like Jingtian&Gongcheng with tailored solutions that deliver significant business results, which will adapt and grow with their changing needs, and deliver full voice, video, data and mobile collaboration on a single platform”, said John Wang, Greater China Managing Director of Avaya.

More than 400,000 Avaya IP Office systems, the company’s flagship collaboration solution for small and medium-sized businesses, have been deployed worldwide, supporting more than 15 million users.

The IP Office business maintained growth in China for 19 consecutive quarters.

“Avaya is not the only provider of comprehensive solutions to the small and medium-sized enterprises, but we are the best. We do not simply put several product lines together, but making tailored product set for them,” said Fu.

Earlier, the company had announced plans to form a special team in China to provide services to small and medium-sized firms.

“We will input more during the approaching fiscal year of 2015,” said Fu.